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Pillar Two Administration

Administration

GloBE Information Return

Generally, each constituent entity located in a jurisdiction is required to file a GloBE Information Return within 15 months after the last day of the fiscal year.

The return may be filed by either the constituent entity itself or by a designated local entity on its behalf. The filing deadline is extended to 18 months after the last day of the fiscal year for the first fiscal year in which an MNE Group comes within the scope of the GloBE Rules in that jurisdiction.

A constituent entity is not required to file a GloBE Information Return if a GloBE Information Return has been filed by either:

 – the UPE that is located in a jurisdiction that has a qualifying competent authority agreement in effect with the constituent entity’s jurisdiction for the fiscal year; or

 – the designated filing entity located in a jurisdiction that has a qualifying competent authority agreement in effect with the constituent entity’s jurisdiction for the fiscal year.

The GloBE Information Return will be filed in a standard template and will generally include the following:

 – identification of the constituent entities, including their tax identification numbers (if they exist), the jurisdiction in which they are located and their status under the GloBE Rules;

 – information on the overall corporate structure of the MNE group, including the controlling interests in the constituent entities held by other constituent entities;

 – information necessary to compute the ETR for each jurisdiction and the top-up tax of each constituent entity;

 – the allocation to each jurisdiction of the IIR top-up tax and the UTPR top-up tax amount;

 – a record of any GloBE elections made; and

 – other information that is necessary to administer the GloBE Rules.

Penalties for infractions of the GloBE Rules will apply under the domestic law of the implementing jurisdictions.

On December 20, 2022, the OECD published a consultation document on the Pillar Two GloBE Information Return. The consultation runs until February 3, 2023.  For more information, see OECD Consultation on the Pillar Two GloBE Information Return.

Safe Harbours

On December 20, 2022, the OECD issued the Safe Harbours and Penalty Relief: Global Anti-Base Erosion Rules (Pillar Two), which includes details of two safe harbours and penalty relief for the Pillar Two GloBE rules
 
A fourth safe harbour (the Qualified Domestic Minimum Top-up Tax (QDMTT) safe harbour is to be considered as part of the administrative guidance). The three published reliefs are the:
 
 – Transitional CbCR Safe Harbour
 – Transitional Penalty Relief Regime
 – Simplified Calculations Safe Harbours